Tribunals and Commissions judgments

ITAT Agra nullified a reassessment under Section 147 after finding the Section 151 approval was a rubber-stamp endorsement without application of mind, reinforcing that procedural compliance is jurisdictional, not formalistic. This ruling impacts all reassessment proceedings where approvals are boilerplate, requiring tax officers to demonstrate genuine scrutiny before reopening assessments.

ITAT Agra rules that mere technical non-disclosure in ITR Form Part B-T1 does not deny exemption under Section 11 if the charitable trust proves actual application of funds through audited records. The ruling reinforces that substantive compliance outweighs procedural lapses for tax-exempt entities.

The Competition Commission of India (CCI) dismissed allegations of abuse of dominance against Rapido, ruling that unlicensed bike-taxi operations are governed by the Motor Vehicles Act, not the Competition Act. The decision clarifies that regulatory non-compliance does not automatically establish anti-competitive conduct, impacting app-based transport platforms and regulatory enforcement.

ITAT Cochin sets aside an ex parte order after the assessee demonstrated a medical emergency and pending RTI request as valid grounds for non-appearance. The ruling reinforces that tribunals must recall ex parte orders when sufficient cause is shown, ensuring adherence to principles of natural justice in tax proceedings.

NGT invokes suo motu powers to halt illegal hill-cutting in Himachal Pradesh after a citizen's complaint, ordering joint inspections by forest, mining, and pollution control authorities. The ruling mandates production of environmental clearances and imposes a stop-work order until legality is verified, setting a precedent for public grievances in environmental violations.

ITAT Mumbai rules that once a loan creditor's genuineness is accepted in a prior set-aside assessment, the same cannot be disputed in subsequent proceedings without new evidence. The tribunal restored the matter for verification of other advances, emphasizing the binding nature of earlier findings on creditor verification under Section 68.

ITAT Delhi rules that for capital gains tax on under-construction properties, indexation of the cost of acquisition must commence from the financial year of allotment and payment, not the registration date. The tribunal also permitted brokerage deduction upon submission of bank transaction evidence, clarifying tax computation for real estate investments.

ITAT Delhi sets aside a reassessment notice under Section 148 of the Income Tax Act for lack of valid sanction under Section 151, emphasizing strict procedural compliance. The ruling nullifies a Rs. 9.91 lakh addition, reinforcing that jurisdictional defects cannot be cured post-facto and safeguarding assessees from arbitrary reassessments.

ITAT Delhi rules that charitable trusts remain eligible for Section 11 exemption despite delayed Form 10B filing, provided the audit report is submitted during appellate proceedings. The decision prioritizes substantive compliance over procedural delays, offering relief to trusts facing similar technical defaults.

ITAT Delhi quashes reassessment under Section 147/144 of the Income Tax Act for failure to serve notice at the assessee's correct address, reinforcing that procedural compliance is mandatory for jurisdiction. The ruling underscores that ex-parte orders without proper notice violate principles of natural justice and are void ab initio.

ITAT Delhi quashed an assessment order where the JCIT's approval under Section 153D was mechanical, lacked application of mind, and omitted mandatory DIN compliance. The ruling reinforces that digital evidence protocols and natural justice principles must govern search assessments to prevent arbitrary tax proceedings.

ITAT Mumbai rules that for capital gains computation under Section 50C, the stamp duty value as on the date of the Memorandum of Understanding (MOU) applies, not the registration date, if procedural delays cause the transfer. This holding impacts taxpayers facing delays in property transfers, ensuring fair valuation for tax purposes.

ITAT Delhi sets aside ₹107 crore transfer pricing adjustment, ruling that Dispute Resolution Panel (DRP) directions under Section 144C are binding on Assessing Officers. The tribunal also held that Renewable Energy Certificates (RECs) qualify as capital receipts, impacting tax liability for energy sector enterprises.

ITAT Delhi rules that reassessment proceedings under Section 147 of the Income Tax Act are invalid if the assessing officer makes additions on grounds not specified in the original reopening notice. The tribunal emphasized that the scope of reassessment cannot expand beyond the reasons recorded for reopening, reinforcing procedural safeguards for taxpayers.

CESTAT rules that pre-SCN payment of service tax, interest, and 15% penalty under Section 78's second proviso conclusively terminates proceedings, shielding assessees from further demand or penalties. The ruling reinforces voluntary compliance as a complete defense, impacting tax dispute resolution strategies for service providers.

ITAT Mumbai rules that expenses incurred by an overseas NRI desk for Indian operations qualify as deductible head office expenditure under Section 44C of the Income Tax Act, provided they are executive or administrative in nature. The ruling clarifies the scope of allowable deductions for multinational banks and non-resident entities, impacting tax compliance and planning for cross-border operations.

ITAT Delhi condoned a 614-day delay in filing an income tax appeal, ruling that the sudden death of the assessee and lack of communication from the authorized representative constituted sufficient cause. The tribunal directed the CIT(A) to decide the appeal on merits after hearing the legal heirs, reinforcing the liberal approach to condonation under natural justice principles.

ITAT Delhi rules that cash received at the time of property registration does not violate Section 269SS if it falls under Explanation (iv) of the Income Tax Act. The tribunal deleted the penalty under Section 271D, emphasizing the exception for transactions during property sales, offering relief to taxpayers facing similar penalties.

ITAT Delhi rules that delayed filing of Form 10CCB under Section 80IAC does not invalidate tax deductions if submitted before assessment finalisation, reinforcing the principle of substantial compliance over procedural technicalities. This precedent protects startups and eligible businesses from losing tax benefits due to minor filing delays.

ITAT Delhi rules that belated filing of Form 67 does not extinguish the substantive right to claim Foreign Tax Credit under DTAA, reinforcing that procedural defects cannot override treaty-based entitlements. The decision applies Delhi HC precedent, ensuring taxpayers retain FTC claims despite administrative delays.

ITAT Delhi rules that reassessment notices under Section 148 of the Income Tax Act for Assessment Year 2015-16 issued after 01.04.2021 are time-barred, affirming the Supreme Court's judgment in Union of India v. Ashish Agarwal. The decision reinforces that the Taxation and Other Laws (Amendment) Act, 2020 (TOLA) does not extend the limitation period for reassessment under the old regime, impacting pending tax reassessment proceedings.

ITAT Ahmedabad rules that for unsecured loans under Section 68, establishing the lender’s identity, creditworthiness via bank statements/ITR, and repayment through banking channels is adequate to avoid additions-even without tracing the origin of funds. This simplifies compliance for taxpayers and narrows the scope of scrutiny for revenue authorities.

CESTAT Chennai rules that service tax cannot be levied on the portion of a works contract already subjected to VAT under TNVAT Rules, preventing double taxation. The judgment clarifies Rule 2A(ii)(B) applicability where material costs are indeterminate, impacting contractors and tax authorities alike.

ITAT Mumbai rules that consultancy receipts cannot be treated as unexplained income under Section 69 without evidence of illegality. Only expenses proven unverifiable-not the entire amount-are disallowed, protecting taxpayers from arbitrary additions.